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4 (40) 2014

4 (40) 2014
РЖД-Партнер

Developing Projects in Europe and Asia

Developing Projects  in Europe and Asia

US and EU sanctions against Russia have not impacted the realization of RZD’s key projects abroad. These and other issues related to international projects of the holding company are the theme for an interview with Alexander Saltanov, Vice President of RZD.

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Getting into the Top Ten

– Mr Saltanov, what are, in your opinion, the main directions for the development of RZD’s international programmes in 2014-2015 and in the future between 2016-2020?

– Strengthening the competitive advantages of RZD in the international infrastructure and transport and logistics sector is of top priority for our company. This is an objective for the short- and long-term prospect.
Our strategic plan is to get into the top ten of companies with high competence in the sector of international infrastructure construction and engineering, and become one of the top five logistics companies in Europe. That is why RZD actively develops cooperation with partners from South-East Asia, Middle East, Latin America, Eastern Europe, and other regions.
The acquisition of French logistics operator GEFCO by Russian Railways and its integration into the holding company can be regarded as one of the main steps in achieving this goal.
We strive to strengthen the mutually beneficial relationship with railway companies and administrations on the 1520 space, the EU and countries from the Asia-Pacific region despite all the political circumstances recently arising in foreign trade.
Also one of the key areas of international activity for RZD is the expansion of cooperation with leading foreign engineering companies to create state-of-the-art rolling stock, to produce new infrastructure elements, to implement innovative technologies for traffic control and safety.
It should be noted that both RZD and foreign players in the transport machine building market are interested in the development of these relationships. The latest major exhibition events confirm my words. At the recent International Trade Fair for Transport Technology “InnoTrans 2014”, several agreements and contracts were signed with such major manufacturers as Alstom Transport, Siemens AG, Mercedes-Benz Trucks Vostok, Mathis Materiel Industriel, and Amsted Rail.
We pay great attention to the work of governmental and non-governmental international organizations in order to promote and protect the interests of Russian Railways on the external transport market. A lot has been done in recent years.
We strengthened our position in the International Union of Railways (UIC). Vladimir Yakunin, President of RZD, was elected as Chairman of the UIC for 2013-2014, and at their last meeting the General Assembly of the UIC approved a proposal to extend his powers for another two years. The formal decision on the matter is scheduled for December - at the annual session of the General Assembly.
Thanks to its efficient work in the framework of the Organization for Cooperation between Railways (OSJD), the company has achieved outstanding results in enhancing the legislative base for international railway transportation and creating unified transport legislation.

– What objectives should be reached through international projects carried out by RZD?

– First of all, the gradual integration of Russian railways into the global transport system. Therefore, we contribute to the recognition of the Russian Federation as a key player in ensuring the economic and trade relations between the EU and Asia-Pacific.
The development of a unified system of transport links between the States-Members of the Customs Union and the Single Economic Space – Russia, Belarus, and Kazakhstan – remains important to us. It is gratifying that our initiatives in this direction were supported by the Russian Government. According to the order of Dmitry Medvedev, the RF Prime Minister, issued on August 30, 2014, transferring 50% plus 2 shares in TransContainer JSC and 100% – 1 share in Russian Railways Logistics JSC to the authorized capital of the Integrated Transport and Logistics Company (OTLK) was approved.
The second challenge facing the international unit of RZD is to expand the company’s portfolio of foreign projects. In fact we are talking about the diversification of sources of income, ensurance of their growth – on condition of a thorough risk assessment.
We also aim to localize the production of modern rolling stock in Russia through the development and strengthening of cooperation with the leaders of the world’s railway engineering sector.

Enhancing Technologies

– What were the most successful international projects carried out in 2013-2014?

– One of the most important achievements in this period was that the holding company managed to significantly increase the role and competitiveness of international transport corridors passing through the territory of Russia. We have some natural advantages. We improved the technology and the production process and strengthened the infrastructure. All this can be considered as prerequisites for becoming a powerful transport and logistics company, whose services are interesting to a constantly increasing range of consignors and consignees.
The real breakthrough of the past year was the construction and modernization of railways in Serbia, including a part of the 10th pan-European transport corridor. On March 25, 2014, a ceremony was held to mark the beginning of the construction and electrification of the second railway line from Pančevo Bridge in Belgrade to the Pančevo Main Station.
This project is an example of fruitful interaction between the authorities of Russia and Serbia. Also, it is a large scale project with good financial and economic figures. Therefore, we send a clear signal to the international railway community: RZD holding company has great potential for development in foreign markets.
A landmark in 2014 was putting into operation a new transshipment terminal on July 18 and beginning cargo transportation via the Khasan (Russia) – Tumangan (North Korea) railway border crossing.
In 2013-2014, RZD holding company signed a number of important agreements with foreign partners. One of them was an agreement about strategic cooperation between RZD and Chinese Railways. Targeted at the development of railway border crossings between Russia and China and railway infrastructure on their approaches, the agreement is to contribute to an increase in the volume of international passenger and cargo transportation between Russia and China and transit via these countries.
Agreements and protocols about strategic partnership for the implementation of railway projects were signed with Mongolia, the Republic of Ecuador and Iranian Railways.
Together with Vietnamese Railways and An Vien, RZD completed the plans for construction of the railway line in the south of Vietnam, which were submitted to the Government of Vietnam in September 2014.
As you see, we do not stand still. International cooperation is developing in all directions. We get specific results that reflect the Company’s most urgent interests in the international arena.

Unique Experience


– The holding company is learning the best practices of foreign railway administrations. Which experience from other countries is the most interesting, in your opinion? Which can be useful for RZD? What is already being used?

– Of course, we are still very interested in the experience of foreign producers in the production of state-of-the-art models of rolling stock, special machinery and production equipment, which is not produced in Russia.
With great attention we watch the amazing breakthrough made by Chinese Railways in the construction of high-speed railways and development of high-speed traffic.
It is hard to say for sure what experience from our foreign partners should be used. It makes sense to analyse how their developments could be adapted to Russian conditions. Our subdivision for technology and innovation policy is working hard in this direction. RZD’s Innovative Strategy and the Program for International Research and Technological Cooperation are being implemented and extend in scope every year.
I would like to note that we not only study the experience of foreign companies but we are engaged in importing technology, and also we have unique and competitive technologies developed by our leading research institutions (NIIAS JSC and VNIIZhT JSC). First of all, these are automated control systems for safe running of traffic, environmental activities, integrated devices providing safe traffic of traction rolling stock, as well as monitoring systems for artificial structures, and many others, including those using satellite technologies.

– Did US and EU sanctions against Russia impact plans for the implementation of RZD’s foreign programmes? If yes, what countervailing measures did RZD take or will take?

– Restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport, and thus they do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation.
Of course, there are certain risks associated with possible restrictions on the borrowing of funds, settlement, which in the future may affect the implementation of our international projects. In addition, a further escalation of political tension and the introduction of additional EU economic sanctions against Russia could potentially lead to some difficulties in providing timely imports of necessary products to RZD and its subsidiaries. Experts believe, however, that our projects are quite resistant to such risks. Partners continue to express their willingness to use flexible approaches to a number of issues in this difficult situation.
It should be noted that the European business community fears that there will be more sanctions against Russia. Everyone understands that if the European businesses leave such a promising market as the Russian, it will be difficult to return to it, primarily due to a loss of confidence by the Russian party.
Despite the complication of political relations between Russia and the EU, RZD continues active cooperation with its European partners in the modernization of rolling stock. The work of representatives of European institutions and countries – members of international organizations remains unchanged. The results of this work are aimed at creating a unified legal environment in Eurasia, as well as achieving global objectives on transport policy.
RZD holding company continues to promote itself to foreign railway infrastructure construction and modernization markets.
On the basis of signed memoranda, in cooperation with railway administrations and transport authorities, the implementation of the project for the new Eurasian transport corridor by extending the broad-gauge railway from Kosice (the Slovak Republic) to Bratislava with an entry to Vienna and the creation of an international logistics center there, is under way.
Moreover, many European countries have expressed an interest in the OTLK project, which, in our opinion, is able to boost the development of the transport sector in the Common Economic Space member countries and become a great tool for expanding cooperation with Asian, especially Chinese Railways. ®
Interviewed by Alexander Solntsev

[~DETAIL_TEXT] =>

Getting into the Top Ten

– Mr Saltanov, what are, in your opinion, the main directions for the development of RZD’s international programmes in 2014-2015 and in the future between 2016-2020?

– Strengthening the competitive advantages of RZD in the international infrastructure and transport and logistics sector is of top priority for our company. This is an objective for the short- and long-term prospect.
Our strategic plan is to get into the top ten of companies with high competence in the sector of international infrastructure construction and engineering, and become one of the top five logistics companies in Europe. That is why RZD actively develops cooperation with partners from South-East Asia, Middle East, Latin America, Eastern Europe, and other regions.
The acquisition of French logistics operator GEFCO by Russian Railways and its integration into the holding company can be regarded as one of the main steps in achieving this goal.
We strive to strengthen the mutually beneficial relationship with railway companies and administrations on the 1520 space, the EU and countries from the Asia-Pacific region despite all the political circumstances recently arising in foreign trade.
Also one of the key areas of international activity for RZD is the expansion of cooperation with leading foreign engineering companies to create state-of-the-art rolling stock, to produce new infrastructure elements, to implement innovative technologies for traffic control and safety.
It should be noted that both RZD and foreign players in the transport machine building market are interested in the development of these relationships. The latest major exhibition events confirm my words. At the recent International Trade Fair for Transport Technology “InnoTrans 2014”, several agreements and contracts were signed with such major manufacturers as Alstom Transport, Siemens AG, Mercedes-Benz Trucks Vostok, Mathis Materiel Industriel, and Amsted Rail.
We pay great attention to the work of governmental and non-governmental international organizations in order to promote and protect the interests of Russian Railways on the external transport market. A lot has been done in recent years.
We strengthened our position in the International Union of Railways (UIC). Vladimir Yakunin, President of RZD, was elected as Chairman of the UIC for 2013-2014, and at their last meeting the General Assembly of the UIC approved a proposal to extend his powers for another two years. The formal decision on the matter is scheduled for December - at the annual session of the General Assembly.
Thanks to its efficient work in the framework of the Organization for Cooperation between Railways (OSJD), the company has achieved outstanding results in enhancing the legislative base for international railway transportation and creating unified transport legislation.

– What objectives should be reached through international projects carried out by RZD?

– First of all, the gradual integration of Russian railways into the global transport system. Therefore, we contribute to the recognition of the Russian Federation as a key player in ensuring the economic and trade relations between the EU and Asia-Pacific.
The development of a unified system of transport links between the States-Members of the Customs Union and the Single Economic Space – Russia, Belarus, and Kazakhstan – remains important to us. It is gratifying that our initiatives in this direction were supported by the Russian Government. According to the order of Dmitry Medvedev, the RF Prime Minister, issued on August 30, 2014, transferring 50% plus 2 shares in TransContainer JSC and 100% – 1 share in Russian Railways Logistics JSC to the authorized capital of the Integrated Transport and Logistics Company (OTLK) was approved.
The second challenge facing the international unit of RZD is to expand the company’s portfolio of foreign projects. In fact we are talking about the diversification of sources of income, ensurance of their growth – on condition of a thorough risk assessment.
We also aim to localize the production of modern rolling stock in Russia through the development and strengthening of cooperation with the leaders of the world’s railway engineering sector.

Enhancing Technologies

– What were the most successful international projects carried out in 2013-2014?

– One of the most important achievements in this period was that the holding company managed to significantly increase the role and competitiveness of international transport corridors passing through the territory of Russia. We have some natural advantages. We improved the technology and the production process and strengthened the infrastructure. All this can be considered as prerequisites for becoming a powerful transport and logistics company, whose services are interesting to a constantly increasing range of consignors and consignees.
The real breakthrough of the past year was the construction and modernization of railways in Serbia, including a part of the 10th pan-European transport corridor. On March 25, 2014, a ceremony was held to mark the beginning of the construction and electrification of the second railway line from Pančevo Bridge in Belgrade to the Pančevo Main Station.
This project is an example of fruitful interaction between the authorities of Russia and Serbia. Also, it is a large scale project with good financial and economic figures. Therefore, we send a clear signal to the international railway community: RZD holding company has great potential for development in foreign markets.
A landmark in 2014 was putting into operation a new transshipment terminal on July 18 and beginning cargo transportation via the Khasan (Russia) – Tumangan (North Korea) railway border crossing.
In 2013-2014, RZD holding company signed a number of important agreements with foreign partners. One of them was an agreement about strategic cooperation between RZD and Chinese Railways. Targeted at the development of railway border crossings between Russia and China and railway infrastructure on their approaches, the agreement is to contribute to an increase in the volume of international passenger and cargo transportation between Russia and China and transit via these countries.
Agreements and protocols about strategic partnership for the implementation of railway projects were signed with Mongolia, the Republic of Ecuador and Iranian Railways.
Together with Vietnamese Railways and An Vien, RZD completed the plans for construction of the railway line in the south of Vietnam, which were submitted to the Government of Vietnam in September 2014.
As you see, we do not stand still. International cooperation is developing in all directions. We get specific results that reflect the Company’s most urgent interests in the international arena.

Unique Experience


– The holding company is learning the best practices of foreign railway administrations. Which experience from other countries is the most interesting, in your opinion? Which can be useful for RZD? What is already being used?

– Of course, we are still very interested in the experience of foreign producers in the production of state-of-the-art models of rolling stock, special machinery and production equipment, which is not produced in Russia.
With great attention we watch the amazing breakthrough made by Chinese Railways in the construction of high-speed railways and development of high-speed traffic.
It is hard to say for sure what experience from our foreign partners should be used. It makes sense to analyse how their developments could be adapted to Russian conditions. Our subdivision for technology and innovation policy is working hard in this direction. RZD’s Innovative Strategy and the Program for International Research and Technological Cooperation are being implemented and extend in scope every year.
I would like to note that we not only study the experience of foreign companies but we are engaged in importing technology, and also we have unique and competitive technologies developed by our leading research institutions (NIIAS JSC and VNIIZhT JSC). First of all, these are automated control systems for safe running of traffic, environmental activities, integrated devices providing safe traffic of traction rolling stock, as well as monitoring systems for artificial structures, and many others, including those using satellite technologies.

– Did US and EU sanctions against Russia impact plans for the implementation of RZD’s foreign programmes? If yes, what countervailing measures did RZD take or will take?

– Restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport, and thus they do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation.
Of course, there are certain risks associated with possible restrictions on the borrowing of funds, settlement, which in the future may affect the implementation of our international projects. In addition, a further escalation of political tension and the introduction of additional EU economic sanctions against Russia could potentially lead to some difficulties in providing timely imports of necessary products to RZD and its subsidiaries. Experts believe, however, that our projects are quite resistant to such risks. Partners continue to express their willingness to use flexible approaches to a number of issues in this difficult situation.
It should be noted that the European business community fears that there will be more sanctions against Russia. Everyone understands that if the European businesses leave such a promising market as the Russian, it will be difficult to return to it, primarily due to a loss of confidence by the Russian party.
Despite the complication of political relations between Russia and the EU, RZD continues active cooperation with its European partners in the modernization of rolling stock. The work of representatives of European institutions and countries – members of international organizations remains unchanged. The results of this work are aimed at creating a unified legal environment in Eurasia, as well as achieving global objectives on transport policy.
RZD holding company continues to promote itself to foreign railway infrastructure construction and modernization markets.
On the basis of signed memoranda, in cooperation with railway administrations and transport authorities, the implementation of the project for the new Eurasian transport corridor by extending the broad-gauge railway from Kosice (the Slovak Republic) to Bratislava with an entry to Vienna and the creation of an international logistics center there, is under way.
Moreover, many European countries have expressed an interest in the OTLK project, which, in our opinion, is able to boost the development of the transport sector in the Common Economic Space member countries and become a great tool for expanding cooperation with Asian, especially Chinese Railways. ®
Interviewed by Alexander Solntsev

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Getting into the Top Ten

– Mr Saltanov, what are, in your opinion, the main directions for the development of RZD’s international programmes in 2014-2015 and in the future between 2016-2020?

– Strengthening the competitive advantages of RZD in the international infrastructure and transport and logistics sector is of top priority for our company. This is an objective for the short- and long-term prospect.
Our strategic plan is to get into the top ten of companies with high competence in the sector of international infrastructure construction and engineering, and become one of the top five logistics companies in Europe. That is why RZD actively develops cooperation with partners from South-East Asia, Middle East, Latin America, Eastern Europe, and other regions.
The acquisition of French logistics operator GEFCO by Russian Railways and its integration into the holding company can be regarded as one of the main steps in achieving this goal.
We strive to strengthen the mutually beneficial relationship with railway companies and administrations on the 1520 space, the EU and countries from the Asia-Pacific region despite all the political circumstances recently arising in foreign trade.
Also one of the key areas of international activity for RZD is the expansion of cooperation with leading foreign engineering companies to create state-of-the-art rolling stock, to produce new infrastructure elements, to implement innovative technologies for traffic control and safety.
It should be noted that both RZD and foreign players in the transport machine building market are interested in the development of these relationships. The latest major exhibition events confirm my words. At the recent International Trade Fair for Transport Technology “InnoTrans 2014”, several agreements and contracts were signed with such major manufacturers as Alstom Transport, Siemens AG, Mercedes-Benz Trucks Vostok, Mathis Materiel Industriel, and Amsted Rail.
We pay great attention to the work of governmental and non-governmental international organizations in order to promote and protect the interests of Russian Railways on the external transport market. A lot has been done in recent years.
We strengthened our position in the International Union of Railways (UIC). Vladimir Yakunin, President of RZD, was elected as Chairman of the UIC for 2013-2014, and at their last meeting the General Assembly of the UIC approved a proposal to extend his powers for another two years. The formal decision on the matter is scheduled for December - at the annual session of the General Assembly.
Thanks to its efficient work in the framework of the Organization for Cooperation between Railways (OSJD), the company has achieved outstanding results in enhancing the legislative base for international railway transportation and creating unified transport legislation.

– What objectives should be reached through international projects carried out by RZD?

– First of all, the gradual integration of Russian railways into the global transport system. Therefore, we contribute to the recognition of the Russian Federation as a key player in ensuring the economic and trade relations between the EU and Asia-Pacific.
The development of a unified system of transport links between the States-Members of the Customs Union and the Single Economic Space – Russia, Belarus, and Kazakhstan – remains important to us. It is gratifying that our initiatives in this direction were supported by the Russian Government. According to the order of Dmitry Medvedev, the RF Prime Minister, issued on August 30, 2014, transferring 50% plus 2 shares in TransContainer JSC and 100% – 1 share in Russian Railways Logistics JSC to the authorized capital of the Integrated Transport and Logistics Company (OTLK) was approved.
The second challenge facing the international unit of RZD is to expand the company’s portfolio of foreign projects. In fact we are talking about the diversification of sources of income, ensurance of their growth – on condition of a thorough risk assessment.
We also aim to localize the production of modern rolling stock in Russia through the development and strengthening of cooperation with the leaders of the world’s railway engineering sector.

Enhancing Technologies

– What were the most successful international projects carried out in 2013-2014?

– One of the most important achievements in this period was that the holding company managed to significantly increase the role and competitiveness of international transport corridors passing through the territory of Russia. We have some natural advantages. We improved the technology and the production process and strengthened the infrastructure. All this can be considered as prerequisites for becoming a powerful transport and logistics company, whose services are interesting to a constantly increasing range of consignors and consignees.
The real breakthrough of the past year was the construction and modernization of railways in Serbia, including a part of the 10th pan-European transport corridor. On March 25, 2014, a ceremony was held to mark the beginning of the construction and electrification of the second railway line from Pančevo Bridge in Belgrade to the Pančevo Main Station.
This project is an example of fruitful interaction between the authorities of Russia and Serbia. Also, it is a large scale project with good financial and economic figures. Therefore, we send a clear signal to the international railway community: RZD holding company has great potential for development in foreign markets.
A landmark in 2014 was putting into operation a new transshipment terminal on July 18 and beginning cargo transportation via the Khasan (Russia) – Tumangan (North Korea) railway border crossing.
In 2013-2014, RZD holding company signed a number of important agreements with foreign partners. One of them was an agreement about strategic cooperation between RZD and Chinese Railways. Targeted at the development of railway border crossings between Russia and China and railway infrastructure on their approaches, the agreement is to contribute to an increase in the volume of international passenger and cargo transportation between Russia and China and transit via these countries.
Agreements and protocols about strategic partnership for the implementation of railway projects were signed with Mongolia, the Republic of Ecuador and Iranian Railways.
Together with Vietnamese Railways and An Vien, RZD completed the plans for construction of the railway line in the south of Vietnam, which were submitted to the Government of Vietnam in September 2014.
As you see, we do not stand still. International cooperation is developing in all directions. We get specific results that reflect the Company’s most urgent interests in the international arena.

Unique Experience


– The holding company is learning the best practices of foreign railway administrations. Which experience from other countries is the most interesting, in your opinion? Which can be useful for RZD? What is already being used?

– Of course, we are still very interested in the experience of foreign producers in the production of state-of-the-art models of rolling stock, special machinery and production equipment, which is not produced in Russia.
With great attention we watch the amazing breakthrough made by Chinese Railways in the construction of high-speed railways and development of high-speed traffic.
It is hard to say for sure what experience from our foreign partners should be used. It makes sense to analyse how their developments could be adapted to Russian conditions. Our subdivision for technology and innovation policy is working hard in this direction. RZD’s Innovative Strategy and the Program for International Research and Technological Cooperation are being implemented and extend in scope every year.
I would like to note that we not only study the experience of foreign companies but we are engaged in importing technology, and also we have unique and competitive technologies developed by our leading research institutions (NIIAS JSC and VNIIZhT JSC). First of all, these are automated control systems for safe running of traffic, environmental activities, integrated devices providing safe traffic of traction rolling stock, as well as monitoring systems for artificial structures, and many others, including those using satellite technologies.

– Did US and EU sanctions against Russia impact plans for the implementation of RZD’s foreign programmes? If yes, what countervailing measures did RZD take or will take?

– Restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport, and thus they do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation.
Of course, there are certain risks associated with possible restrictions on the borrowing of funds, settlement, which in the future may affect the implementation of our international projects. In addition, a further escalation of political tension and the introduction of additional EU economic sanctions against Russia could potentially lead to some difficulties in providing timely imports of necessary products to RZD and its subsidiaries. Experts believe, however, that our projects are quite resistant to such risks. Partners continue to express their willingness to use flexible approaches to a number of issues in this difficult situation.
It should be noted that the European business community fears that there will be more sanctions against Russia. Everyone understands that if the European businesses leave such a promising market as the Russian, it will be difficult to return to it, primarily due to a loss of confidence by the Russian party.
Despite the complication of political relations between Russia and the EU, RZD continues active cooperation with its European partners in the modernization of rolling stock. The work of representatives of European institutions and countries – members of international organizations remains unchanged. The results of this work are aimed at creating a unified legal environment in Eurasia, as well as achieving global objectives on transport policy.
RZD holding company continues to promote itself to foreign railway infrastructure construction and modernization markets.
On the basis of signed memoranda, in cooperation with railway administrations and transport authorities, the implementation of the project for the new Eurasian transport corridor by extending the broad-gauge railway from Kosice (the Slovak Republic) to Bratislava with an entry to Vienna and the creation of an international logistics center there, is under way.
Moreover, many European countries have expressed an interest in the OTLK project, which, in our opinion, is able to boost the development of the transport sector in the Common Economic Space member countries and become a great tool for expanding cooperation with Asian, especially Chinese Railways. ®
Interviewed by Alexander Solntsev

[~DETAIL_TEXT] =>

Getting into the Top Ten

– Mr Saltanov, what are, in your opinion, the main directions for the development of RZD’s international programmes in 2014-2015 and in the future between 2016-2020?

– Strengthening the competitive advantages of RZD in the international infrastructure and transport and logistics sector is of top priority for our company. This is an objective for the short- and long-term prospect.
Our strategic plan is to get into the top ten of companies with high competence in the sector of international infrastructure construction and engineering, and become one of the top five logistics companies in Europe. That is why RZD actively develops cooperation with partners from South-East Asia, Middle East, Latin America, Eastern Europe, and other regions.
The acquisition of French logistics operator GEFCO by Russian Railways and its integration into the holding company can be regarded as one of the main steps in achieving this goal.
We strive to strengthen the mutually beneficial relationship with railway companies and administrations on the 1520 space, the EU and countries from the Asia-Pacific region despite all the political circumstances recently arising in foreign trade.
Also one of the key areas of international activity for RZD is the expansion of cooperation with leading foreign engineering companies to create state-of-the-art rolling stock, to produce new infrastructure elements, to implement innovative technologies for traffic control and safety.
It should be noted that both RZD and foreign players in the transport machine building market are interested in the development of these relationships. The latest major exhibition events confirm my words. At the recent International Trade Fair for Transport Technology “InnoTrans 2014”, several agreements and contracts were signed with such major manufacturers as Alstom Transport, Siemens AG, Mercedes-Benz Trucks Vostok, Mathis Materiel Industriel, and Amsted Rail.
We pay great attention to the work of governmental and non-governmental international organizations in order to promote and protect the interests of Russian Railways on the external transport market. A lot has been done in recent years.
We strengthened our position in the International Union of Railways (UIC). Vladimir Yakunin, President of RZD, was elected as Chairman of the UIC for 2013-2014, and at their last meeting the General Assembly of the UIC approved a proposal to extend his powers for another two years. The formal decision on the matter is scheduled for December - at the annual session of the General Assembly.
Thanks to its efficient work in the framework of the Organization for Cooperation between Railways (OSJD), the company has achieved outstanding results in enhancing the legislative base for international railway transportation and creating unified transport legislation.

– What objectives should be reached through international projects carried out by RZD?

– First of all, the gradual integration of Russian railways into the global transport system. Therefore, we contribute to the recognition of the Russian Federation as a key player in ensuring the economic and trade relations between the EU and Asia-Pacific.
The development of a unified system of transport links between the States-Members of the Customs Union and the Single Economic Space – Russia, Belarus, and Kazakhstan – remains important to us. It is gratifying that our initiatives in this direction were supported by the Russian Government. According to the order of Dmitry Medvedev, the RF Prime Minister, issued on August 30, 2014, transferring 50% plus 2 shares in TransContainer JSC and 100% – 1 share in Russian Railways Logistics JSC to the authorized capital of the Integrated Transport and Logistics Company (OTLK) was approved.
The second challenge facing the international unit of RZD is to expand the company’s portfolio of foreign projects. In fact we are talking about the diversification of sources of income, ensurance of their growth – on condition of a thorough risk assessment.
We also aim to localize the production of modern rolling stock in Russia through the development and strengthening of cooperation with the leaders of the world’s railway engineering sector.

Enhancing Technologies

– What were the most successful international projects carried out in 2013-2014?

– One of the most important achievements in this period was that the holding company managed to significantly increase the role and competitiveness of international transport corridors passing through the territory of Russia. We have some natural advantages. We improved the technology and the production process and strengthened the infrastructure. All this can be considered as prerequisites for becoming a powerful transport and logistics company, whose services are interesting to a constantly increasing range of consignors and consignees.
The real breakthrough of the past year was the construction and modernization of railways in Serbia, including a part of the 10th pan-European transport corridor. On March 25, 2014, a ceremony was held to mark the beginning of the construction and electrification of the second railway line from Pančevo Bridge in Belgrade to the Pančevo Main Station.
This project is an example of fruitful interaction between the authorities of Russia and Serbia. Also, it is a large scale project with good financial and economic figures. Therefore, we send a clear signal to the international railway community: RZD holding company has great potential for development in foreign markets.
A landmark in 2014 was putting into operation a new transshipment terminal on July 18 and beginning cargo transportation via the Khasan (Russia) – Tumangan (North Korea) railway border crossing.
In 2013-2014, RZD holding company signed a number of important agreements with foreign partners. One of them was an agreement about strategic cooperation between RZD and Chinese Railways. Targeted at the development of railway border crossings between Russia and China and railway infrastructure on their approaches, the agreement is to contribute to an increase in the volume of international passenger and cargo transportation between Russia and China and transit via these countries.
Agreements and protocols about strategic partnership for the implementation of railway projects were signed with Mongolia, the Republic of Ecuador and Iranian Railways.
Together with Vietnamese Railways and An Vien, RZD completed the plans for construction of the railway line in the south of Vietnam, which were submitted to the Government of Vietnam in September 2014.
As you see, we do not stand still. International cooperation is developing in all directions. We get specific results that reflect the Company’s most urgent interests in the international arena.

Unique Experience


– The holding company is learning the best practices of foreign railway administrations. Which experience from other countries is the most interesting, in your opinion? Which can be useful for RZD? What is already being used?

– Of course, we are still very interested in the experience of foreign producers in the production of state-of-the-art models of rolling stock, special machinery and production equipment, which is not produced in Russia.
With great attention we watch the amazing breakthrough made by Chinese Railways in the construction of high-speed railways and development of high-speed traffic.
It is hard to say for sure what experience from our foreign partners should be used. It makes sense to analyse how their developments could be adapted to Russian conditions. Our subdivision for technology and innovation policy is working hard in this direction. RZD’s Innovative Strategy and the Program for International Research and Technological Cooperation are being implemented and extend in scope every year.
I would like to note that we not only study the experience of foreign companies but we are engaged in importing technology, and also we have unique and competitive technologies developed by our leading research institutions (NIIAS JSC and VNIIZhT JSC). First of all, these are automated control systems for safe running of traffic, environmental activities, integrated devices providing safe traffic of traction rolling stock, as well as monitoring systems for artificial structures, and many others, including those using satellite technologies.

– Did US and EU sanctions against Russia impact plans for the implementation of RZD’s foreign programmes? If yes, what countervailing measures did RZD take or will take?

– Restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport, and thus they do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation.
Of course, there are certain risks associated with possible restrictions on the borrowing of funds, settlement, which in the future may affect the implementation of our international projects. In addition, a further escalation of political tension and the introduction of additional EU economic sanctions against Russia could potentially lead to some difficulties in providing timely imports of necessary products to RZD and its subsidiaries. Experts believe, however, that our projects are quite resistant to such risks. Partners continue to express their willingness to use flexible approaches to a number of issues in this difficult situation.
It should be noted that the European business community fears that there will be more sanctions against Russia. Everyone understands that if the European businesses leave such a promising market as the Russian, it will be difficult to return to it, primarily due to a loss of confidence by the Russian party.
Despite the complication of political relations between Russia and the EU, RZD continues active cooperation with its European partners in the modernization of rolling stock. The work of representatives of European institutions and countries – members of international organizations remains unchanged. The results of this work are aimed at creating a unified legal environment in Eurasia, as well as achieving global objectives on transport policy.
RZD holding company continues to promote itself to foreign railway infrastructure construction and modernization markets.
On the basis of signed memoranda, in cooperation with railway administrations and transport authorities, the implementation of the project for the new Eurasian transport corridor by extending the broad-gauge railway from Kosice (the Slovak Republic) to Bratislava with an entry to Vienna and the creation of an international logistics center there, is under way.
Moreover, many European countries have expressed an interest in the OTLK project, which, in our opinion, is able to boost the development of the transport sector in the Common Economic Space member countries and become a great tool for expanding cooperation with Asian, especially Chinese Railways. ®
Interviewed by Alexander Solntsev

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US and EU sanctions against Russia have not impacted the realization of RZD’s key projects abroad. These and other issues related to international projects of the holding company are the theme for an interview with Alexander Saltanov, Vice President of RZD.

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US and EU sanctions against Russia have not impacted the realization of RZD’s key projects abroad. These and other issues related to international projects of the holding company are the theme for an interview with Alexander Saltanov, Vice President of RZD.

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РЖД-Партнер

News

Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.

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By 2030 Russian Railways JSC Should Become a Multimodal Logistics Company
Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.
“This will be ensured by the growth of cargo transportation, by creating additional traffic and by the provision of integrated services, – he said. – In addition, it is important to ensure the sustainability of GEFCO and to focus on servicing only key customers at 4PL level outside Eurasia.”
The main mechanism for combining transportation and logistics in countries of the Common Economic Space will be the United Transport and Logistics Company (UTLC). “So far this is the only business project, which is implemented in the integration processes in the Common Economic Space,” added V.Yakunin. Legal registration of UTLC is expected to be completed this autumn.
In general, there is a slowing down of the development of the logistics market both globally and within the Russian Federation. It is expected that the growth of the global transport and logistics market will not exceed 2.8%. In Russia it is expected to decrease from 3.8% (in 2013) to 3.1%.

Requirements for Environmental Safety on the Railways are Tightened in Russia
Requirements for environmental safety on the railway transport have been tightened in Russia, said the deputy of the State Duma Fatih Sibagatullin.
According to him, this is the amendment to the law “On environmental protection.” In particular, a new definition of “temporarily permitted discharges” is introduced.
The law categorises environmentally harmful sources, into four categories. The first category includes sources that are more harmful to nature. To alleviate the load on the environment, companies will have to apply the best available technology.
As an example, F. Sibagatullin gave some substances and materials that are used by Russian Railways JSC. He noted that the company sought to introduce modern equipment to minimize harmful effects on the environment. In particular, the company now dumps 11 million tons of treated wastewater.
Additional measures to ensure environmental safety are recommended to be applied for carriage and loading of dangerous and heavily powdered goods. The situation in these segments of the market of cargo transportation is of concern in the State Duma.

China is Ready to Build Toll Roads in Russia
Chinese companies are ready to build highways in Russia, but they must be toll roads, said Deputy Secretary of China Association of the development abroad Hae Czenvej.
“Yes, the Chinese are going to build roads in Russia, but we have to be sure that these roads will bring us money, - he said. - How? We must charge a fee. The road should not be free. Since its construction the money has been spent, therefore it must be paid back.”
According to the Chinese official, this will be easy, if “appropriate policies” are implemented. He added that road construction needed to rely on foreign investment, not on the budget.
“If China relied on a budget, we wouldn’t have any roads. Public policy is very important in this matter. Many regions in Russia are still waiting for money from the Government,” he said.
H. Czenvej is sure that the future of Russian-Chinese investment cooperation stands for infrastructure construction.

Fees for Ships can be Applied in Russia
Deputy Prime Minister of Russia Arkady Dvorkovich requested the agencies concerned to consider the introduction of fees for passage of vessels on certain sections of inland waterways.
The Ministry of Transport confirmed that it had received such an order.
However, it is not yet known, if this innovation would be implemented for all inland waterways. At the moment carriers use101 km of river routes free of charge. At the same time, three quarters of inland waterways are free to use; they carry about 30% of river cargo and more than 50% of the passengers.
Total traffic volume last year amounted to 142 million tons, turnover – 81 billion tonne-kilometers, about 13 million people were carried by passenger ferries. The issue is expected to be decided by the end of this month.

Kirkenes and Rovaniemi can Combine Railways
The business society of Northern Finland have been lobbying the project for the long time, and now their efforts are beginning to yield noticeable results.
In the strategy paper drawn up by the administration of Northern Finland two northern provinces applied to the Government this year with the idea of a project that is critical for Arctic policy. “Finland should enter into a strategic alliance with Norway on railways to the coast of the Arctic seas through the Troms or Kirkenes,” the document says. It was also noted that Norway was going to discuss this issue.
In 2012, during an official visit to Norway, the President of Finland Sauli Niinisto supported this initiative during negotiations with Norwegian counterparts. The project has also been the subject of discussion in multilateral European cooperation structures.
At a recent meeting of the Nordic Council, member of Finnish Parliament Eero Suutari said that the construction of railways to the North opened up a host of possibilities, including access to The Arctic Ocean. In his opinion, the railway would facilitate the export of products to the growing mining industry of Northern Finland and Sweden. Experts note that the trains could carry not just the ore, but a variety of products, and in addition, would benefit the tourism industry.
Former Prime Minister of Finland Paavo Lipponen would be a central figure in the further progress of the project.The Finnish Union of Industrialists asked him to explore the Arctic opportunities for Finnish business and industry. The study should be ready by the beginning of 2015.
The Norwegian side is also interested in the initiative, particularly in the North of the country. The local administration of the town of Kirkenes, which is regarded as one of the two possible destinations of the railway, has provided funding an additional feasibility study of the project

Azerbaijan Invites New Members to join the Baku-Tbilisi-Kars Railway Project
New members can join the intergovernmental agreement on the establishment of a railway corridor between Baku-Tbilisi-Kars, implemented by Azerbaijan, Georgia and Turkey, said Transport Minister of Azerbaijan Ziya Mamedov.
“The project is open to new participants,” he said, speaking in Baku during the International Conference “Railway line Baku-Tbilisi-Kars: new perspectives in the development of the historical Silk Road.”
According to him, the project has been successfully implemented, a 75.6-kilometer line on Turkish territory, a 183-kilometer line on the territory of Georgia and a 4.5-km tunnel on the Turkish-Georgian border are all under construction.
“By the end of this year, the first pilot train will be launched, the project will be finished in 2015,” said Z.Mamedov.
He noted that the volumes of railroad cargo transportation are projected to be 3 million tons after the first three years of operations, after five years – at the level of 5 million tons and more, after 10 years – at the level of 10 million tons or more.
Intergovernmental agreement on the establishment of a railway corridor between  Baku-Tbilisi-Kars was signed in 2007.

Russian Railways International Will Develop the High-Speed Railway Project in Serbia
The 40-kilometer railroad linking Stara Pazova and Novi Sad will be built in early 2018.
Russian Railways International (a subsidiary of RZD JSC, engaged in implementation of international projects) and the Serbian Institute CIP signed a contract for the development of working documentation for the construction and reconstruction of the Stara Pazova-Novi Sad high-speed railway line.
Investment in the project will amount to $450 million. “It will be the first railway line with a design speed of 200 kph, not only in Serbia but also in the entire region,” the statement said.
According to the Deputy Prime Minister of Serbia, Zorany Michailovich, talking about the so-called additional agreement to the contract, the construction will be financed by Russian loans.
The process of developing of working papers will end in June, 2015. Construction of the line will last 30 months.
Earlier Serbia and Russian Railways signed a contract for a loan of $800 million, which will be focused on the development and modernization of the railway network in the country. “$91 million has already been spent. The result of the cooperation is Belgrade-Pancevo railway line. Work is going fine. You know there were some problems. For the first time I can say that this work is really going well,” said the Prime Minister of Serbia Aleksandar Vucic in September.
According to him, the Serbian side was cautious because it had no successful projects to show for the money that had been spent. In his words, the authorities changed the management of railways in Serbia. “We have established cooperation with a Russian company, and we expect it will continue in the future,” said Serbian Prime Minister.

The Fastest Train in the World Was Launched in Japan
The fastest train in the world started transporting passengers in Japan. Its name is Hayabusa, and its speed is 500 kph.
The new high-speed train is eco-friendly and has an innovative design. Twice a day it will travel on the route between the capital Tokyo and the city of Aomori. It has only business class, so the fare is set at 320 dollars.
This type of train is interesting for the United States. The President of the USA said that his country would provide $13 million to purchase the fastest train in the world from Japan.
RZD Plans to Use
Open Source Products
Russian Railways JSC is going to use open source products for the creation of fully-featured business applications.
As explained by the Vice President of the company Alexey Illarionov, open source products are products with open code.
“If we are satisfied with the licensing conditions, we can develop our own products on the basis of their components,” A.Illarionov said.
He added that the interest in open source software does not constitute a waiver of industrial platforms previously used. Their implementation should provide two things: firstly, it would strengthen the domestic market, because products based on open source will be developed for applications created by IT-specialists of RZD. Secondly, there is no need to buy licenses from the developer, and copies of products could be installed at each workplace.

Russia and China Signed a Memorandum on Cooperation for the HSR
A Memorandum of Cooperation on high-speed railway has been signed between the Ministry of Transport of the Russian Federation, Russian Railways JSC, China’s State Committee for Development and Reform and the Chinese Railways corporation.
The purpose of the document is to develop a Eurasian Moscow - Beijing high-speed transport corridor, including a priority project for the Moscow - Kazan high-speed railway.
In the framework of the memorandum, the parties plan to interact to implement unified planning and coordination, while the companies will work together and develop a strategic partnership and cooperation in the field of high-speed rail, including cooperation on design, construction work, maintenance, equipment supplies, investment and project financing.
The document states that the Chinese side is willing to consider participating in the project under a public-private partnership, participate in the project’s equity financing, both by investing in the equity and the debt financing. On implementing the project, the Chinese side may also offer to supply the appropriate technologies and localisation of the rolling stock and components on the territory of the Russian Federation.
Russia is ready to consider the use of Chinese technology in the field of high-speed rail, construction and manufacturing equipment.

New Rail Route will Speed Up Transportation from Finland to China
Finnish logistics services provider Nurminen Logistics has signed a letter of intent to build a railway across the Asian continent, which will shorten the cargo passage between Finland and China.
The letter was signed late last month with UTLC, a joint venture between Russia, Kazakhstan and Belarus state railways, to open a new railway route to China, news service Good News from Finland said in a report.
According to Nurminen Logistics, the railway connection will run from Finland to Central China via Kazakhstan. Transferring container transport from ocean shipping to railways will significantly shorten the transport time from Finland to China from 80 days to 20 days.
The new railway route is primarily designed for transit transport via Russia, said Olli Pohjanvirta, president and CEO of Nurminen Logistics.
He believed that a fast and regular railway connection to China will benefit European forest and mechanical engineering companies, as well as operators importing seasonal goods from China to Europe.
Nurminen Logistics said that the first deliveries are scheduled to start from the last quarter of 2014.

Russia Considers Ban on Tours without Return Tickets
Many tourists who were victims of a series of bankruptcies of tour agencies in Russia could not return home. In this connection, the Russian tourist industry is preparing for reform that will help eliminate the revealed shortcomings and weaknesses in the current structure of the domestic tourist industry.
For example, the tourist agencies may be prohibited from issuing the permit, if the person does not receive a return ticket. “Unfortunately, it often happens that the operator has a problem with the air carrier. Tickets are not issued because return flights have not been paid for. It turns out that the tourists who paid in full for their vacation, take off without return tickets,” said a representative of the Russian tourist industry Union, Irina Tyurina added.
A proposal for a ban on tours without return tickets is supported by specialized agencies.

[~DETAIL_TEXT] =>

By 2030 Russian Railways JSC Should Become a Multimodal Logistics Company
Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.
“This will be ensured by the growth of cargo transportation, by creating additional traffic and by the provision of integrated services, – he said. – In addition, it is important to ensure the sustainability of GEFCO and to focus on servicing only key customers at 4PL level outside Eurasia.”
The main mechanism for combining transportation and logistics in countries of the Common Economic Space will be the United Transport and Logistics Company (UTLC). “So far this is the only business project, which is implemented in the integration processes in the Common Economic Space,” added V.Yakunin. Legal registration of UTLC is expected to be completed this autumn.
In general, there is a slowing down of the development of the logistics market both globally and within the Russian Federation. It is expected that the growth of the global transport and logistics market will not exceed 2.8%. In Russia it is expected to decrease from 3.8% (in 2013) to 3.1%.

Requirements for Environmental Safety on the Railways are Tightened in Russia
Requirements for environmental safety on the railway transport have been tightened in Russia, said the deputy of the State Duma Fatih Sibagatullin.
According to him, this is the amendment to the law “On environmental protection.” In particular, a new definition of “temporarily permitted discharges” is introduced.
The law categorises environmentally harmful sources, into four categories. The first category includes sources that are more harmful to nature. To alleviate the load on the environment, companies will have to apply the best available technology.
As an example, F. Sibagatullin gave some substances and materials that are used by Russian Railways JSC. He noted that the company sought to introduce modern equipment to minimize harmful effects on the environment. In particular, the company now dumps 11 million tons of treated wastewater.
Additional measures to ensure environmental safety are recommended to be applied for carriage and loading of dangerous and heavily powdered goods. The situation in these segments of the market of cargo transportation is of concern in the State Duma.

China is Ready to Build Toll Roads in Russia
Chinese companies are ready to build highways in Russia, but they must be toll roads, said Deputy Secretary of China Association of the development abroad Hae Czenvej.
“Yes, the Chinese are going to build roads in Russia, but we have to be sure that these roads will bring us money, - he said. - How? We must charge a fee. The road should not be free. Since its construction the money has been spent, therefore it must be paid back.”
According to the Chinese official, this will be easy, if “appropriate policies” are implemented. He added that road construction needed to rely on foreign investment, not on the budget.
“If China relied on a budget, we wouldn’t have any roads. Public policy is very important in this matter. Many regions in Russia are still waiting for money from the Government,” he said.
H. Czenvej is sure that the future of Russian-Chinese investment cooperation stands for infrastructure construction.

Fees for Ships can be Applied in Russia
Deputy Prime Minister of Russia Arkady Dvorkovich requested the agencies concerned to consider the introduction of fees for passage of vessels on certain sections of inland waterways.
The Ministry of Transport confirmed that it had received such an order.
However, it is not yet known, if this innovation would be implemented for all inland waterways. At the moment carriers use101 km of river routes free of charge. At the same time, three quarters of inland waterways are free to use; they carry about 30% of river cargo and more than 50% of the passengers.
Total traffic volume last year amounted to 142 million tons, turnover – 81 billion tonne-kilometers, about 13 million people were carried by passenger ferries. The issue is expected to be decided by the end of this month.

Kirkenes and Rovaniemi can Combine Railways
The business society of Northern Finland have been lobbying the project for the long time, and now their efforts are beginning to yield noticeable results.
In the strategy paper drawn up by the administration of Northern Finland two northern provinces applied to the Government this year with the idea of a project that is critical for Arctic policy. “Finland should enter into a strategic alliance with Norway on railways to the coast of the Arctic seas through the Troms or Kirkenes,” the document says. It was also noted that Norway was going to discuss this issue.
In 2012, during an official visit to Norway, the President of Finland Sauli Niinisto supported this initiative during negotiations with Norwegian counterparts. The project has also been the subject of discussion in multilateral European cooperation structures.
At a recent meeting of the Nordic Council, member of Finnish Parliament Eero Suutari said that the construction of railways to the North opened up a host of possibilities, including access to The Arctic Ocean. In his opinion, the railway would facilitate the export of products to the growing mining industry of Northern Finland and Sweden. Experts note that the trains could carry not just the ore, but a variety of products, and in addition, would benefit the tourism industry.
Former Prime Minister of Finland Paavo Lipponen would be a central figure in the further progress of the project.The Finnish Union of Industrialists asked him to explore the Arctic opportunities for Finnish business and industry. The study should be ready by the beginning of 2015.
The Norwegian side is also interested in the initiative, particularly in the North of the country. The local administration of the town of Kirkenes, which is regarded as one of the two possible destinations of the railway, has provided funding an additional feasibility study of the project

Azerbaijan Invites New Members to join the Baku-Tbilisi-Kars Railway Project
New members can join the intergovernmental agreement on the establishment of a railway corridor between Baku-Tbilisi-Kars, implemented by Azerbaijan, Georgia and Turkey, said Transport Minister of Azerbaijan Ziya Mamedov.
“The project is open to new participants,” he said, speaking in Baku during the International Conference “Railway line Baku-Tbilisi-Kars: new perspectives in the development of the historical Silk Road.”
According to him, the project has been successfully implemented, a 75.6-kilometer line on Turkish territory, a 183-kilometer line on the territory of Georgia and a 4.5-km tunnel on the Turkish-Georgian border are all under construction.
“By the end of this year, the first pilot train will be launched, the project will be finished in 2015,” said Z.Mamedov.
He noted that the volumes of railroad cargo transportation are projected to be 3 million tons after the first three years of operations, after five years – at the level of 5 million tons and more, after 10 years – at the level of 10 million tons or more.
Intergovernmental agreement on the establishment of a railway corridor between  Baku-Tbilisi-Kars was signed in 2007.

Russian Railways International Will Develop the High-Speed Railway Project in Serbia
The 40-kilometer railroad linking Stara Pazova and Novi Sad will be built in early 2018.
Russian Railways International (a subsidiary of RZD JSC, engaged in implementation of international projects) and the Serbian Institute CIP signed a contract for the development of working documentation for the construction and reconstruction of the Stara Pazova-Novi Sad high-speed railway line.
Investment in the project will amount to $450 million. “It will be the first railway line with a design speed of 200 kph, not only in Serbia but also in the entire region,” the statement said.
According to the Deputy Prime Minister of Serbia, Zorany Michailovich, talking about the so-called additional agreement to the contract, the construction will be financed by Russian loans.
The process of developing of working papers will end in June, 2015. Construction of the line will last 30 months.
Earlier Serbia and Russian Railways signed a contract for a loan of $800 million, which will be focused on the development and modernization of the railway network in the country. “$91 million has already been spent. The result of the cooperation is Belgrade-Pancevo railway line. Work is going fine. You know there were some problems. For the first time I can say that this work is really going well,” said the Prime Minister of Serbia Aleksandar Vucic in September.
According to him, the Serbian side was cautious because it had no successful projects to show for the money that had been spent. In his words, the authorities changed the management of railways in Serbia. “We have established cooperation with a Russian company, and we expect it will continue in the future,” said Serbian Prime Minister.

The Fastest Train in the World Was Launched in Japan
The fastest train in the world started transporting passengers in Japan. Its name is Hayabusa, and its speed is 500 kph.
The new high-speed train is eco-friendly and has an innovative design. Twice a day it will travel on the route between the capital Tokyo and the city of Aomori. It has only business class, so the fare is set at 320 dollars.
This type of train is interesting for the United States. The President of the USA said that his country would provide $13 million to purchase the fastest train in the world from Japan.
RZD Plans to Use
Open Source Products
Russian Railways JSC is going to use open source products for the creation of fully-featured business applications.
As explained by the Vice President of the company Alexey Illarionov, open source products are products with open code.
“If we are satisfied with the licensing conditions, we can develop our own products on the basis of their components,” A.Illarionov said.
He added that the interest in open source software does not constitute a waiver of industrial platforms previously used. Their implementation should provide two things: firstly, it would strengthen the domestic market, because products based on open source will be developed for applications created by IT-specialists of RZD. Secondly, there is no need to buy licenses from the developer, and copies of products could be installed at each workplace.

Russia and China Signed a Memorandum on Cooperation for the HSR
A Memorandum of Cooperation on high-speed railway has been signed between the Ministry of Transport of the Russian Federation, Russian Railways JSC, China’s State Committee for Development and Reform and the Chinese Railways corporation.
The purpose of the document is to develop a Eurasian Moscow - Beijing high-speed transport corridor, including a priority project for the Moscow - Kazan high-speed railway.
In the framework of the memorandum, the parties plan to interact to implement unified planning and coordination, while the companies will work together and develop a strategic partnership and cooperation in the field of high-speed rail, including cooperation on design, construction work, maintenance, equipment supplies, investment and project financing.
The document states that the Chinese side is willing to consider participating in the project under a public-private partnership, participate in the project’s equity financing, both by investing in the equity and the debt financing. On implementing the project, the Chinese side may also offer to supply the appropriate technologies and localisation of the rolling stock and components on the territory of the Russian Federation.
Russia is ready to consider the use of Chinese technology in the field of high-speed rail, construction and manufacturing equipment.

New Rail Route will Speed Up Transportation from Finland to China
Finnish logistics services provider Nurminen Logistics has signed a letter of intent to build a railway across the Asian continent, which will shorten the cargo passage between Finland and China.
The letter was signed late last month with UTLC, a joint venture between Russia, Kazakhstan and Belarus state railways, to open a new railway route to China, news service Good News from Finland said in a report.
According to Nurminen Logistics, the railway connection will run from Finland to Central China via Kazakhstan. Transferring container transport from ocean shipping to railways will significantly shorten the transport time from Finland to China from 80 days to 20 days.
The new railway route is primarily designed for transit transport via Russia, said Olli Pohjanvirta, president and CEO of Nurminen Logistics.
He believed that a fast and regular railway connection to China will benefit European forest and mechanical engineering companies, as well as operators importing seasonal goods from China to Europe.
Nurminen Logistics said that the first deliveries are scheduled to start from the last quarter of 2014.

Russia Considers Ban on Tours without Return Tickets
Many tourists who were victims of a series of bankruptcies of tour agencies in Russia could not return home. In this connection, the Russian tourist industry is preparing for reform that will help eliminate the revealed shortcomings and weaknesses in the current structure of the domestic tourist industry.
For example, the tourist agencies may be prohibited from issuing the permit, if the person does not receive a return ticket. “Unfortunately, it often happens that the operator has a problem with the air carrier. Tickets are not issued because return flights have not been paid for. It turns out that the tourists who paid in full for their vacation, take off without return tickets,” said a representative of the Russian tourist industry Union, Irina Tyurina added.
A proposal for a ban on tours without return tickets is supported by specialized agencies.

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Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.

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Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.

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By 2030 Russian Railways JSC Should Become a Multimodal Logistics Company
Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.
“This will be ensured by the growth of cargo transportation, by creating additional traffic and by the provision of integrated services, – he said. – In addition, it is important to ensure the sustainability of GEFCO and to focus on servicing only key customers at 4PL level outside Eurasia.”
The main mechanism for combining transportation and logistics in countries of the Common Economic Space will be the United Transport and Logistics Company (UTLC). “So far this is the only business project, which is implemented in the integration processes in the Common Economic Space,” added V.Yakunin. Legal registration of UTLC is expected to be completed this autumn.
In general, there is a slowing down of the development of the logistics market both globally and within the Russian Federation. It is expected that the growth of the global transport and logistics market will not exceed 2.8%. In Russia it is expected to decrease from 3.8% (in 2013) to 3.1%.

Requirements for Environmental Safety on the Railways are Tightened in Russia
Requirements for environmental safety on the railway transport have been tightened in Russia, said the deputy of the State Duma Fatih Sibagatullin.
According to him, this is the amendment to the law “On environmental protection.” In particular, a new definition of “temporarily permitted discharges” is introduced.
The law categorises environmentally harmful sources, into four categories. The first category includes sources that are more harmful to nature. To alleviate the load on the environment, companies will have to apply the best available technology.
As an example, F. Sibagatullin gave some substances and materials that are used by Russian Railways JSC. He noted that the company sought to introduce modern equipment to minimize harmful effects on the environment. In particular, the company now dumps 11 million tons of treated wastewater.
Additional measures to ensure environmental safety are recommended to be applied for carriage and loading of dangerous and heavily powdered goods. The situation in these segments of the market of cargo transportation is of concern in the State Duma.

China is Ready to Build Toll Roads in Russia
Chinese companies are ready to build highways in Russia, but they must be toll roads, said Deputy Secretary of China Association of the development abroad Hae Czenvej.
“Yes, the Chinese are going to build roads in Russia, but we have to be sure that these roads will bring us money, - he said. - How? We must charge a fee. The road should not be free. Since its construction the money has been spent, therefore it must be paid back.”
According to the Chinese official, this will be easy, if “appropriate policies” are implemented. He added that road construction needed to rely on foreign investment, not on the budget.
“If China relied on a budget, we wouldn’t have any roads. Public policy is very important in this matter. Many regions in Russia are still waiting for money from the Government,” he said.
H. Czenvej is sure that the future of Russian-Chinese investment cooperation stands for infrastructure construction.

Fees for Ships can be Applied in Russia
Deputy Prime Minister of Russia Arkady Dvorkovich requested the agencies concerned to consider the introduction of fees for passage of vessels on certain sections of inland waterways.
The Ministry of Transport confirmed that it had received such an order.
However, it is not yet known, if this innovation would be implemented for all inland waterways. At the moment carriers use101 km of river routes free of charge. At the same time, three quarters of inland waterways are free to use; they carry about 30% of river cargo and more than 50% of the passengers.
Total traffic volume last year amounted to 142 million tons, turnover – 81 billion tonne-kilometers, about 13 million people were carried by passenger ferries. The issue is expected to be decided by the end of this month.

Kirkenes and Rovaniemi can Combine Railways
The business society of Northern Finland have been lobbying the project for the long time, and now their efforts are beginning to yield noticeable results.
In the strategy paper drawn up by the administration of Northern Finland two northern provinces applied to the Government this year with the idea of a project that is critical for Arctic policy. “Finland should enter into a strategic alliance with Norway on railways to the coast of the Arctic seas through the Troms or Kirkenes,” the document says. It was also noted that Norway was going to discuss this issue.
In 2012, during an official visit to Norway, the President of Finland Sauli Niinisto supported this initiative during negotiations with Norwegian counterparts. The project has also been the subject of discussion in multilateral European cooperation structures.
At a recent meeting of the Nordic Council, member of Finnish Parliament Eero Suutari said that the construction of railways to the North opened up a host of possibilities, including access to The Arctic Ocean. In his opinion, the railway would facilitate the export of products to the growing mining industry of Northern Finland and Sweden. Experts note that the trains could carry not just the ore, but a variety of products, and in addition, would benefit the tourism industry.
Former Prime Minister of Finland Paavo Lipponen would be a central figure in the further progress of the project.The Finnish Union of Industrialists asked him to explore the Arctic opportunities for Finnish business and industry. The study should be ready by the beginning of 2015.
The Norwegian side is also interested in the initiative, particularly in the North of the country. The local administration of the town of Kirkenes, which is regarded as one of the two possible destinations of the railway, has provided funding an additional feasibility study of the project

Azerbaijan Invites New Members to join the Baku-Tbilisi-Kars Railway Project
New members can join the intergovernmental agreement on the establishment of a railway corridor between Baku-Tbilisi-Kars, implemented by Azerbaijan, Georgia and Turkey, said Transport Minister of Azerbaijan Ziya Mamedov.
“The project is open to new participants,” he said, speaking in Baku during the International Conference “Railway line Baku-Tbilisi-Kars: new perspectives in the development of the historical Silk Road.”
According to him, the project has been successfully implemented, a 75.6-kilometer line on Turkish territory, a 183-kilometer line on the territory of Georgia and a 4.5-km tunnel on the Turkish-Georgian border are all under construction.
“By the end of this year, the first pilot train will be launched, the project will be finished in 2015,” said Z.Mamedov.
He noted that the volumes of railroad cargo transportation are projected to be 3 million tons after the first three years of operations, after five years – at the level of 5 million tons and more, after 10 years – at the level of 10 million tons or more.
Intergovernmental agreement on the establishment of a railway corridor between  Baku-Tbilisi-Kars was signed in 2007.

Russian Railways International Will Develop the High-Speed Railway Project in Serbia
The 40-kilometer railroad linking Stara Pazova and Novi Sad will be built in early 2018.
Russian Railways International (a subsidiary of RZD JSC, engaged in implementation of international projects) and the Serbian Institute CIP signed a contract for the development of working documentation for the construction and reconstruction of the Stara Pazova-Novi Sad high-speed railway line.
Investment in the project will amount to $450 million. “It will be the first railway line with a design speed of 200 kph, not only in Serbia but also in the entire region,” the statement said.
According to the Deputy Prime Minister of Serbia, Zorany Michailovich, talking about the so-called additional agreement to the contract, the construction will be financed by Russian loans.
The process of developing of working papers will end in June, 2015. Construction of the line will last 30 months.
Earlier Serbia and Russian Railways signed a contract for a loan of $800 million, which will be focused on the development and modernization of the railway network in the country. “$91 million has already been spent. The result of the cooperation is Belgrade-Pancevo railway line. Work is going fine. You know there were some problems. For the first time I can say that this work is really going well,” said the Prime Minister of Serbia Aleksandar Vucic in September.
According to him, the Serbian side was cautious because it had no successful projects to show for the money that had been spent. In his words, the authorities changed the management of railways in Serbia. “We have established cooperation with a Russian company, and we expect it will continue in the future,” said Serbian Prime Minister.

The Fastest Train in the World Was Launched in Japan
The fastest train in the world started transporting passengers in Japan. Its name is Hayabusa, and its speed is 500 kph.
The new high-speed train is eco-friendly and has an innovative design. Twice a day it will travel on the route between the capital Tokyo and the city of Aomori. It has only business class, so the fare is set at 320 dollars.
This type of train is interesting for the United States. The President of the USA said that his country would provide $13 million to purchase the fastest train in the world from Japan.
RZD Plans to Use
Open Source Products
Russian Railways JSC is going to use open source products for the creation of fully-featured business applications.
As explained by the Vice President of the company Alexey Illarionov, open source products are products with open code.
“If we are satisfied with the licensing conditions, we can develop our own products on the basis of their components,” A.Illarionov said.
He added that the interest in open source software does not constitute a waiver of industrial platforms previously used. Their implementation should provide two things: firstly, it would strengthen the domestic market, because products based on open source will be developed for applications created by IT-specialists of RZD. Secondly, there is no need to buy licenses from the developer, and copies of products could be installed at each workplace.

Russia and China Signed a Memorandum on Cooperation for the HSR
A Memorandum of Cooperation on high-speed railway has been signed between the Ministry of Transport of the Russian Federation, Russian Railways JSC, China’s State Committee for Development and Reform and the Chinese Railways corporation.
The purpose of the document is to develop a Eurasian Moscow - Beijing high-speed transport corridor, including a priority project for the Moscow - Kazan high-speed railway.
In the framework of the memorandum, the parties plan to interact to implement unified planning and coordination, while the companies will work together and develop a strategic partnership and cooperation in the field of high-speed rail, including cooperation on design, construction work, maintenance, equipment supplies, investment and project financing.
The document states that the Chinese side is willing to consider participating in the project under a public-private partnership, participate in the project’s equity financing, both by investing in the equity and the debt financing. On implementing the project, the Chinese side may also offer to supply the appropriate technologies and localisation of the rolling stock and components on the territory of the Russian Federation.
Russia is ready to consider the use of Chinese technology in the field of high-speed rail, construction and manufacturing equipment.

New Rail Route will Speed Up Transportation from Finland to China
Finnish logistics services provider Nurminen Logistics has signed a letter of intent to build a railway across the Asian continent, which will shorten the cargo passage between Finland and China.
The letter was signed late last month with UTLC, a joint venture between Russia, Kazakhstan and Belarus state railways, to open a new railway route to China, news service Good News from Finland said in a report.
According to Nurminen Logistics, the railway connection will run from Finland to Central China via Kazakhstan. Transferring container transport from ocean shipping to railways will significantly shorten the transport time from Finland to China from 80 days to 20 days.
The new railway route is primarily designed for transit transport via Russia, said Olli Pohjanvirta, president and CEO of Nurminen Logistics.
He believed that a fast and regular railway connection to China will benefit European forest and mechanical engineering companies, as well as operators importing seasonal goods from China to Europe.
Nurminen Logistics said that the first deliveries are scheduled to start from the last quarter of 2014.

Russia Considers Ban on Tours without Return Tickets
Many tourists who were victims of a series of bankruptcies of tour agencies in Russia could not return home. In this connection, the Russian tourist industry is preparing for reform that will help eliminate the revealed shortcomings and weaknesses in the current structure of the domestic tourist industry.
For example, the tourist agencies may be prohibited from issuing the permit, if the person does not receive a return ticket. “Unfortunately, it often happens that the operator has a problem with the air carrier. Tickets are not issued because return flights have not been paid for. It turns out that the tourists who paid in full for their vacation, take off without return tickets,” said a representative of the Russian tourist industry Union, Irina Tyurina added.
A proposal for a ban on tours without return tickets is supported by specialized agencies.

[~DETAIL_TEXT] =>

By 2030 Russian Railways JSC Should Become a Multimodal Logistics Company
Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.
“This will be ensured by the growth of cargo transportation, by creating additional traffic and by the provision of integrated services, – he said. – In addition, it is important to ensure the sustainability of GEFCO and to focus on servicing only key customers at 4PL level outside Eurasia.”
The main mechanism for combining transportation and logistics in countries of the Common Economic Space will be the United Transport and Logistics Company (UTLC). “So far this is the only business project, which is implemented in the integration processes in the Common Economic Space,” added V.Yakunin. Legal registration of UTLC is expected to be completed this autumn.
In general, there is a slowing down of the development of the logistics market both globally and within the Russian Federation. It is expected that the growth of the global transport and logistics market will not exceed 2.8%. In Russia it is expected to decrease from 3.8% (in 2013) to 3.1%.

Requirements for Environmental Safety on the Railways are Tightened in Russia
Requirements for environmental safety on the railway transport have been tightened in Russia, said the deputy of the State Duma Fatih Sibagatullin.
According to him, this is the amendment to the law “On environmental protection.” In particular, a new definition of “temporarily permitted discharges” is introduced.
The law categorises environmentally harmful sources, into four categories. The first category includes sources that are more harmful to nature. To alleviate the load on the environment, companies will have to apply the best available technology.
As an example, F. Sibagatullin gave some substances and materials that are used by Russian Railways JSC. He noted that the company sought to introduce modern equipment to minimize harmful effects on the environment. In particular, the company now dumps 11 million tons of treated wastewater.
Additional measures to ensure environmental safety are recommended to be applied for carriage and loading of dangerous and heavily powdered goods. The situation in these segments of the market of cargo transportation is of concern in the State Duma.

China is Ready to Build Toll Roads in Russia
Chinese companies are ready to build highways in Russia, but they must be toll roads, said Deputy Secretary of China Association of the development abroad Hae Czenvej.
“Yes, the Chinese are going to build roads in Russia, but we have to be sure that these roads will bring us money, - he said. - How? We must charge a fee. The road should not be free. Since its construction the money has been spent, therefore it must be paid back.”
According to the Chinese official, this will be easy, if “appropriate policies” are implemented. He added that road construction needed to rely on foreign investment, not on the budget.
“If China relied on a budget, we wouldn’t have any roads. Public policy is very important in this matter. Many regions in Russia are still waiting for money from the Government,” he said.
H. Czenvej is sure that the future of Russian-Chinese investment cooperation stands for infrastructure construction.

Fees for Ships can be Applied in Russia
Deputy Prime Minister of Russia Arkady Dvorkovich requested the agencies concerned to consider the introduction of fees for passage of vessels on certain sections of inland waterways.
The Ministry of Transport confirmed that it had received such an order.
However, it is not yet known, if this innovation would be implemented for all inland waterways. At the moment carriers use101 km of river routes free of charge. At the same time, three quarters of inland waterways are free to use; they carry about 30% of river cargo and more than 50% of the passengers.
Total traffic volume last year amounted to 142 million tons, turnover – 81 billion tonne-kilometers, about 13 million people were carried by passenger ferries. The issue is expected to be decided by the end of this month.

Kirkenes and Rovaniemi can Combine Railways
The business society of Northern Finland have been lobbying the project for the long time, and now their efforts are beginning to yield noticeable results.
In the strategy paper drawn up by the administration of Northern Finland two northern provinces applied to the Government this year with the idea of a project that is critical for Arctic policy. “Finland should enter into a strategic alliance with Norway on railways to the coast of the Arctic seas through the Troms or Kirkenes,” the document says. It was also noted that Norway was going to discuss this issue.
In 2012, during an official visit to Norway, the President of Finland Sauli Niinisto supported this initiative during negotiations with Norwegian counterparts. The project has also been the subject of discussion in multilateral European cooperation structures.
At a recent meeting of the Nordic Council, member of Finnish Parliament Eero Suutari said that the construction of railways to the North opened up a host of possibilities, including access to The Arctic Ocean. In his opinion, the railway would facilitate the export of products to the growing mining industry of Northern Finland and Sweden. Experts note that the trains could carry not just the ore, but a variety of products, and in addition, would benefit the tourism industry.
Former Prime Minister of Finland Paavo Lipponen would be a central figure in the further progress of the project.The Finnish Union of Industrialists asked him to explore the Arctic opportunities for Finnish business and industry. The study should be ready by the beginning of 2015.
The Norwegian side is also interested in the initiative, particularly in the North of the country. The local administration of the town of Kirkenes, which is regarded as one of the two possible destinations of the railway, has provided funding an additional feasibility study of the project

Azerbaijan Invites New Members to join the Baku-Tbilisi-Kars Railway Project
New members can join the intergovernmental agreement on the establishment of a railway corridor between Baku-Tbilisi-Kars, implemented by Azerbaijan, Georgia and Turkey, said Transport Minister of Azerbaijan Ziya Mamedov.
“The project is open to new participants,” he said, speaking in Baku during the International Conference “Railway line Baku-Tbilisi-Kars: new perspectives in the development of the historical Silk Road.”
According to him, the project has been successfully implemented, a 75.6-kilometer line on Turkish territory, a 183-kilometer line on the territory of Georgia and a 4.5-km tunnel on the Turkish-Georgian border are all under construction.
“By the end of this year, the first pilot train will be launched, the project will be finished in 2015,” said Z.Mamedov.
He noted that the volumes of railroad cargo transportation are projected to be 3 million tons after the first three years of operations, after five years – at the level of 5 million tons and more, after 10 years – at the level of 10 million tons or more.
Intergovernmental agreement on the establishment of a railway corridor between  Baku-Tbilisi-Kars was signed in 2007.

Russian Railways International Will Develop the High-Speed Railway Project in Serbia
The 40-kilometer railroad linking Stara Pazova and Novi Sad will be built in early 2018.
Russian Railways International (a subsidiary of RZD JSC, engaged in implementation of international projects) and the Serbian Institute CIP signed a contract for the development of working documentation for the construction and reconstruction of the Stara Pazova-Novi Sad high-speed railway line.
Investment in the project will amount to $450 million. “It will be the first railway line with a design speed of 200 kph, not only in Serbia but also in the entire region,” the statement said.
According to the Deputy Prime Minister of Serbia, Zorany Michailovich, talking about the so-called additional agreement to the contract, the construction will be financed by Russian loans.
The process of developing of working papers will end in June, 2015. Construction of the line will last 30 months.
Earlier Serbia and Russian Railways signed a contract for a loan of $800 million, which will be focused on the development and modernization of the railway network in the country. “$91 million has already been spent. The result of the cooperation is Belgrade-Pancevo railway line. Work is going fine. You know there were some problems. For the first time I can say that this work is really going well,” said the Prime Minister of Serbia Aleksandar Vucic in September.
According to him, the Serbian side was cautious because it had no successful projects to show for the money that had been spent. In his words, the authorities changed the management of railways in Serbia. “We have established cooperation with a Russian company, and we expect it will continue in the future,” said Serbian Prime Minister.

The Fastest Train in the World Was Launched in Japan
The fastest train in the world started transporting passengers in Japan. Its name is Hayabusa, and its speed is 500 kph.
The new high-speed train is eco-friendly and has an innovative design. Twice a day it will travel on the route between the capital Tokyo and the city of Aomori. It has only business class, so the fare is set at 320 dollars.
This type of train is interesting for the United States. The President of the USA said that his country would provide $13 million to purchase the fastest train in the world from Japan.
RZD Plans to Use
Open Source Products
Russian Railways JSC is going to use open source products for the creation of fully-featured business applications.
As explained by the Vice President of the company Alexey Illarionov, open source products are products with open code.
“If we are satisfied with the licensing conditions, we can develop our own products on the basis of their components,” A.Illarionov said.
He added that the interest in open source software does not constitute a waiver of industrial platforms previously used. Their implementation should provide two things: firstly, it would strengthen the domestic market, because products based on open source will be developed for applications created by IT-specialists of RZD. Secondly, there is no need to buy licenses from the developer, and copies of products could be installed at each workplace.

Russia and China Signed a Memorandum on Cooperation for the HSR
A Memorandum of Cooperation on high-speed railway has been signed between the Ministry of Transport of the Russian Federation, Russian Railways JSC, China’s State Committee for Development and Reform and the Chinese Railways corporation.
The purpose of the document is to develop a Eurasian Moscow - Beijing high-speed transport corridor, including a priority project for the Moscow - Kazan high-speed railway.
In the framework of the memorandum, the parties plan to interact to implement unified planning and coordination, while the companies will work together and develop a strategic partnership and cooperation in the field of high-speed rail, including cooperation on design, construction work, maintenance, equipment supplies, investment and project financing.
The document states that the Chinese side is willing to consider participating in the project under a public-private partnership, participate in the project’s equity financing, both by investing in the equity and the debt financing. On implementing the project, the Chinese side may also offer to supply the appropriate technologies and localisation of the rolling stock and components on the territory of the Russian Federation.
Russia is ready to consider the use of Chinese technology in the field of high-speed rail, construction and manufacturing equipment.

New Rail Route will Speed Up Transportation from Finland to China
Finnish logistics services provider Nurminen Logistics has signed a letter of intent to build a railway across the Asian continent, which will shorten the cargo passage between Finland and China.
The letter was signed late last month with UTLC, a joint venture between Russia, Kazakhstan and Belarus state railways, to open a new railway route to China, news service Good News from Finland said in a report.
According to Nurminen Logistics, the railway connection will run from Finland to Central China via Kazakhstan. Transferring container transport from ocean shipping to railways will significantly shorten the transport time from Finland to China from 80 days to 20 days.
The new railway route is primarily designed for transit transport via Russia, said Olli Pohjanvirta, president and CEO of Nurminen Logistics.
He believed that a fast and regular railway connection to China will benefit European forest and mechanical engineering companies, as well as operators importing seasonal goods from China to Europe.
Nurminen Logistics said that the first deliveries are scheduled to start from the last quarter of 2014.

Russia Considers Ban on Tours without Return Tickets
Many tourists who were victims of a series of bankruptcies of tour agencies in Russia could not return home. In this connection, the Russian tourist industry is preparing for reform that will help eliminate the revealed shortcomings and weaknesses in the current structure of the domestic tourist industry.
For example, the tourist agencies may be prohibited from issuing the permit, if the person does not receive a return ticket. “Unfortunately, it often happens that the operator has a problem with the air carrier. Tickets are not issued because return flights have not been paid for. It turns out that the tourists who paid in full for their vacation, take off without return tickets,” said a representative of the Russian tourist industry Union, Irina Tyurina added.
A proposal for a ban on tours without return tickets is supported by specialized agencies.

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Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.

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Russian Railways JSC should become a multimodal logistics company with a focus on Eurasia, said President of the company Vladimir Yakunin.

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РЖД-Партнер

Cooperation in an Age of Crisis

The sanctions against the Russian Federation continue to be one of the most discussed topics in the business community. The transport industry is looking for new means of international cooperation.

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During the summer, the economic crisis seriously affected the Russian tourist market. Tour operators experienced a series of large bankruptcies. Sales of tours to foreign countries had decreased considerably due to the devaluation of the ruble, as prices of tours had significantly increased. In order not to lose market share in the highly competitive market, many travel agencies have begun to dump, hoping to close the gap in their economy profits earned during the high season. (pp.  52-52)
The import and export embargo affected the Russian logistics market, due to the sanctions the leasing market also suffered. It didn’t cause panic in the business society, but it is clear that the situation became rather tough for many market players.
One of the most influential transport events, the InnoTrans exhibition in Berlin, had to answer the important question, whether Russia would lose Western contracts with major manufacturers of railway equipment. (pp. 24-25) The event organizers and participants were waiting for a response from the President of Russian Railways Vladimir Yakunin, who also visited this exhibition.
He held some business meetings with major suppliers and said that Siemens, Alstom, Bombardier Transportation and other companies were not going to cancel their contracts with Russian partners due to the sanctions.
Siemens, for example, is interested in the development of high-speed transportation in Russia. The German initiative for the development of high-speed railways has already been signed in an agreement with the Russian side.
Bombardier Transportation is also not going to terminate contracts with Russia. “We are trying to produce more and more products for the Russian market, because we believe in this market. We have a joint venture with UVZ. We have good cooperation, we respect each other. We are sure that in the future we will be able to successfully continue this work”, said President of the Locomotive Division of Bombardier Transportation, Ulrich Joham.
Vice President of RZD JSC
Alexander Saltanov says that restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport. “They do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation,” he adds. (pp. 10-12)
Moreover, the company is looking for new ways to strengthen its relations with the West. One of the new routes is cooperation in the field of ecology. Therefore, RZD JSC became the general partner of the International Forum “GreenLogistics: Ideas. Practice. Prospects.” Representatives of international unions and large logistics companies will soon meet in Helsinki to discuss the further development of “green” technologies.
“Improving environmental performance goes hand in hand with improving efficiency in logistics”, – says CEO of VR Group Mikael Aro. (pp. 29-30)
Finland has made great strides in this field. It was one of the first 15 countries of the European Union, which in 2002, ratified the Kyoto Protocol that provides a system of quotas of greenhouse gas emissions, and today more and more Finnish companies are choosing the path of sustainable development. According to the Mayor of Lappeenranta Kimmo Jarva, this is happening because his country is not afraid to be a test site for such innovations. (pp. 31-32)
Today Russia plays an important role in the global transport market, and in the autumn dialogue with Western companies showed that there was no turning point in relations with Western partners.
Everyone understands that if the European business leaves such a promising market as the Russian one, it will be difficult to come back. Therefore, cooperation will be continued, and there is hope for new interesting international projects.

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During the summer, the economic crisis seriously affected the Russian tourist market. Tour operators experienced a series of large bankruptcies. Sales of tours to foreign countries had decreased considerably due to the devaluation of the ruble, as prices of tours had significantly increased. In order not to lose market share in the highly competitive market, many travel agencies have begun to dump, hoping to close the gap in their economy profits earned during the high season. (pp.  52-52)
The import and export embargo affected the Russian logistics market, due to the sanctions the leasing market also suffered. It didn’t cause panic in the business society, but it is clear that the situation became rather tough for many market players.
One of the most influential transport events, the InnoTrans exhibition in Berlin, had to answer the important question, whether Russia would lose Western contracts with major manufacturers of railway equipment. (pp. 24-25) The event organizers and participants were waiting for a response from the President of Russian Railways Vladimir Yakunin, who also visited this exhibition.
He held some business meetings with major suppliers and said that Siemens, Alstom, Bombardier Transportation and other companies were not going to cancel their contracts with Russian partners due to the sanctions.
Siemens, for example, is interested in the development of high-speed transportation in Russia. The German initiative for the development of high-speed railways has already been signed in an agreement with the Russian side.
Bombardier Transportation is also not going to terminate contracts with Russia. “We are trying to produce more and more products for the Russian market, because we believe in this market. We have a joint venture with UVZ. We have good cooperation, we respect each other. We are sure that in the future we will be able to successfully continue this work”, said President of the Locomotive Division of Bombardier Transportation, Ulrich Joham.
Vice President of RZD JSC
Alexander Saltanov says that restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport. “They do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation,” he adds. (pp. 10-12)
Moreover, the company is looking for new ways to strengthen its relations with the West. One of the new routes is cooperation in the field of ecology. Therefore, RZD JSC became the general partner of the International Forum “GreenLogistics: Ideas. Practice. Prospects.” Representatives of international unions and large logistics companies will soon meet in Helsinki to discuss the further development of “green” technologies.
“Improving environmental performance goes hand in hand with improving efficiency in logistics”, – says CEO of VR Group Mikael Aro. (pp. 29-30)
Finland has made great strides in this field. It was one of the first 15 countries of the European Union, which in 2002, ratified the Kyoto Protocol that provides a system of quotas of greenhouse gas emissions, and today more and more Finnish companies are choosing the path of sustainable development. According to the Mayor of Lappeenranta Kimmo Jarva, this is happening because his country is not afraid to be a test site for such innovations. (pp. 31-32)
Today Russia plays an important role in the global transport market, and in the autumn dialogue with Western companies showed that there was no turning point in relations with Western partners.
Everyone understands that if the European business leaves such a promising market as the Russian one, it will be difficult to come back. Therefore, cooperation will be continued, and there is hope for new interesting international projects.

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The sanctions against the Russian Federation continue to be one of the most discussed topics in the business community. The transport industry is looking for new means of international cooperation.

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During the summer, the economic crisis seriously affected the Russian tourist market. Tour operators experienced a series of large bankruptcies. Sales of tours to foreign countries had decreased considerably due to the devaluation of the ruble, as prices of tours had significantly increased. In order not to lose market share in the highly competitive market, many travel agencies have begun to dump, hoping to close the gap in their economy profits earned during the high season. (pp.  52-52)
The import and export embargo affected the Russian logistics market, due to the sanctions the leasing market also suffered. It didn’t cause panic in the business society, but it is clear that the situation became rather tough for many market players.
One of the most influential transport events, the InnoTrans exhibition in Berlin, had to answer the important question, whether Russia would lose Western contracts with major manufacturers of railway equipment. (pp. 24-25) The event organizers and participants were waiting for a response from the President of Russian Railways Vladimir Yakunin, who also visited this exhibition.
He held some business meetings with major suppliers and said that Siemens, Alstom, Bombardier Transportation and other companies were not going to cancel their contracts with Russian partners due to the sanctions.
Siemens, for example, is interested in the development of high-speed transportation in Russia. The German initiative for the development of high-speed railways has already been signed in an agreement with the Russian side.
Bombardier Transportation is also not going to terminate contracts with Russia. “We are trying to produce more and more products for the Russian market, because we believe in this market. We have a joint venture with UVZ. We have good cooperation, we respect each other. We are sure that in the future we will be able to successfully continue this work”, said President of the Locomotive Division of Bombardier Transportation, Ulrich Joham.
Vice President of RZD JSC
Alexander Saltanov says that restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport. “They do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation,” he adds. (pp. 10-12)
Moreover, the company is looking for new ways to strengthen its relations with the West. One of the new routes is cooperation in the field of ecology. Therefore, RZD JSC became the general partner of the International Forum “GreenLogistics: Ideas. Practice. Prospects.” Representatives of international unions and large logistics companies will soon meet in Helsinki to discuss the further development of “green” technologies.
“Improving environmental performance goes hand in hand with improving efficiency in logistics”, – says CEO of VR Group Mikael Aro. (pp. 29-30)
Finland has made great strides in this field. It was one of the first 15 countries of the European Union, which in 2002, ratified the Kyoto Protocol that provides a system of quotas of greenhouse gas emissions, and today more and more Finnish companies are choosing the path of sustainable development. According to the Mayor of Lappeenranta Kimmo Jarva, this is happening because his country is not afraid to be a test site for such innovations. (pp. 31-32)
Today Russia plays an important role in the global transport market, and in the autumn dialogue with Western companies showed that there was no turning point in relations with Western partners.
Everyone understands that if the European business leaves such a promising market as the Russian one, it will be difficult to come back. Therefore, cooperation will be continued, and there is hope for new interesting international projects.

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During the summer, the economic crisis seriously affected the Russian tourist market. Tour operators experienced a series of large bankruptcies. Sales of tours to foreign countries had decreased considerably due to the devaluation of the ruble, as prices of tours had significantly increased. In order not to lose market share in the highly competitive market, many travel agencies have begun to dump, hoping to close the gap in their economy profits earned during the high season. (pp.  52-52)
The import and export embargo affected the Russian logistics market, due to the sanctions the leasing market also suffered. It didn’t cause panic in the business society, but it is clear that the situation became rather tough for many market players.
One of the most influential transport events, the InnoTrans exhibition in Berlin, had to answer the important question, whether Russia would lose Western contracts with major manufacturers of railway equipment. (pp. 24-25) The event organizers and participants were waiting for a response from the President of Russian Railways Vladimir Yakunin, who also visited this exhibition.
He held some business meetings with major suppliers and said that Siemens, Alstom, Bombardier Transportation and other companies were not going to cancel their contracts with Russian partners due to the sanctions.
Siemens, for example, is interested in the development of high-speed transportation in Russia. The German initiative for the development of high-speed railways has already been signed in an agreement with the Russian side.
Bombardier Transportation is also not going to terminate contracts with Russia. “We are trying to produce more and more products for the Russian market, because we believe in this market. We have a joint venture with UVZ. We have good cooperation, we respect each other. We are sure that in the future we will be able to successfully continue this work”, said President of the Locomotive Division of Bombardier Transportation, Ulrich Joham.
Vice President of RZD JSC
Alexander Saltanov says that restrictive measures have not yet had a direct impact on relations between Russia and the EU in the field of railway transport. “They do not impose on the European partners of RZD any formal obligations to suspend or limit interactions on ongoing and future joint projects in the field of railway transport. In other words, US and EU sanctions haven’t practically impacted RZD’s strategic goals and objectives for international cooperation,” he adds. (pp. 10-12)
Moreover, the company is looking for new ways to strengthen its relations with the West. One of the new routes is cooperation in the field of ecology. Therefore, RZD JSC became the general partner of the International Forum “GreenLogistics: Ideas. Practice. Prospects.” Representatives of international unions and large logistics companies will soon meet in Helsinki to discuss the further development of “green” technologies.
“Improving environmental performance goes hand in hand with improving efficiency in logistics”, – says CEO of VR Group Mikael Aro. (pp. 29-30)
Finland has made great strides in this field. It was one of the first 15 countries of the European Union, which in 2002, ratified the Kyoto Protocol that provides a system of quotas of greenhouse gas emissions, and today more and more Finnish companies are choosing the path of sustainable development. According to the Mayor of Lappeenranta Kimmo Jarva, this is happening because his country is not afraid to be a test site for such innovations. (pp. 31-32)
Today Russia plays an important role in the global transport market, and in the autumn dialogue with Western companies showed that there was no turning point in relations with Western partners.
Everyone understands that if the European business leaves such a promising market as the Russian one, it will be difficult to come back. Therefore, cooperation will be continued, and there is hope for new interesting international projects.

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The sanctions against the Russian Federation continue to be one of the most discussed topics in the business community. The transport industry is looking for new means of international cooperation.

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The sanctions against the Russian Federation continue to be one of the most discussed topics in the business community. The transport industry is looking for new means of international cooperation.

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